Loans have become a part and parcel of life in India owing to their availability and accessibility to each and every one. Loans are even available for things such as phones and furniture. Car and home loan are still huge in the market. Car loans are not only available on new cars but also on used cars.
The loan interest rate may be higher than that of a new car based on the condition of the car along with other factors. Below are a few things you need to do before applying and finally getting the loan amount.
Identify where to apply for a loan
While most banks offer car loans on pre-owned or used cars, it is suggested that a thorough research is done on the banks that offer these loans and what is the rate of interest for the same. It is required to check used Hyundai Verna car emi Bangalore so that proper planning can be done for future expenses etc.
Amount of loan you can get
Typically, you can get about a loan valued at about 75% of the value of the car. You would need to pay the balance as a down payment for the car or at your own expense.
Rate of Interest for the loan
Various banks have varying rates of interest and it is important to check with multiple banks before finalizing on one. The bank rates also vary depending on the make and model and the condition of the car. The rate of interest varies from 10% per annum to nearly 18% per annum
Submit the documents for the loan
Once the decision for the bank and amount has been made, documentation needs to be done. All banks verify the original paper and certificates for the car. Upon submission and verification of the documents, the bank can disburse the required loan for the purchase.